Stress Tests: 80 More Banks

European officials appear to have decided on public stress-testing of about 80 extra European Union banks — over and above the 25 banks of significance to the global banking system that were being tested anyway. This will include banks in every one of the 27 European Union countries. (Last time I wrote about this the number had been narrowed to between 60 and 120 extra banks.)

For now, I have no detail on the nature of the “sovereign shock” that will be tested. But I am told that the “full methodology” of the tests will be disclosed. The tests will be tougher, examining the impact on national banking systems of adverse shocks–as well as on the broader European banking system.

There appears to be a debate in Germany about the wisdom of full disclosure. Some European officials say, however, that there is no leeway for the top 25 banks, based on the the decision of EU leaders last month, and they think all the tested banks will end up being required to disclose fully.

About Real Time Brussels

The Wall Street Journal’s Brussels blog is produced by the Brussels bureau of The Wall Street Journal and Dow Jones Newswires. The bureau has been headed since 2009 by Stephen Fidler, who was previously a correspondent and editor for the Financial Times and Reuters. Also posting regularly: Matthew Dalton, Viktoria Dendrinou, Tom Fairless, Naftali Bendavid, Laurence Norman, Gabriele Steinhauser and Valentina Pop.